Burgundy today represents a conflict in conceptual terms. For some, it is the Holy Grail of wine, the source of several of the most brilliant white and red wines in existence. Yet to others, the region symbolizes inconsistency as well as lofty, perhaps even outlandish pricing.
Fires are still burning in northern California and people's homes are still endangered.
That said, it's time to look at what the deadly wildfires will mean for the region's wine industry, the most important in North America. The surprising answer, given the heartbreaking scenes of destruction we have seen, is that the overall impact will not be particularly large.
My accountant is a dedicated wine enthusiast, and he always gives his clients the same informal investment advice: young Bordeaux will almost always give you a better return on investment than the stock market. He has his own collection of luxury wine bottles, and within just five years of buying his first “investment case,” he’s already seen a 16 percent increase in his wine’s value. By comparison, the stock market only offered him a 7 percent average return each year.
Sales growth delivers welcome good news to North Coast wineries.
U.S. wine sales grew steadily in September, posting 3% growth oveall while sales through off-premise channels increased 5% versus a year earlier. While imported wines staged gains, the data held some of its best news for North Coast wineries.
After rallying for nearly two years, the Liv-ex 1000 index – the broadest measure of the market – fell in September. This was the first time that the index closed the month down in 22 months. The Liv-ex 50, which tracks the prices of Bordeaux First Growths, also drifted. It closed September down 0.3%.